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Michigan Voters Reject Sales Tax Rate Increase

 And no sales tax rate increase in Michigan.

On May 5, voters in Michigan soundly rejected Proposal 1, which sought a sales tax rate increase. According to The Detroit News, “It was one of the worst ballot measure defeats in more than a generation.”

The general sales tax increase “was designed to offset revenue losses to schools and municipalities, which depend on sales and use tax revenue.” This was deemed to be necessary because the proposal would also have eliminated the sales and use tax on fuel for vehicles.

In his concession speech, Governor Rick Snyder said that he knows voters “want action taken to maintain and improve our roads and bridges.” He vowed to “start anew to find a comprehensive, long-term solution to this problem.” Doing nothing, he said, “isn’t an option” (The Detroit News).

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Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.